The Club’s 10 things to watch Friday, July 18 — Today’s newsletter was written by Jeff Marks, the Club’s director of portfolio analysis. 1. Stock futures are muted to close out the week this morning. The S & P 500 closed at a new all-time high yesterday, and all three major averages are on pace for winning weeks amid a string of strong earnings reports. 2. Netflix reported a small second-quarter revenue and earnings per share beat last night. Its 16% year-over-year revenue growth was driven by an increase in subscriptions, higher pricing and increased ad revenue. While shares dropped more than 2% this morning, several analysts raise their price targets north of $1,500. 3. 3M beat on revenues and adjusted EPS of $2.16 exceeded the consensus of $2.10. Organic sales growth was up 1.5%. The industrial conglomerate now sees a smaller full-year tariff impact than previously expected. It raised its full-year earnings per share outlook, including tariff impact. Its previous guidance did not include the impact of tariffs. 4. American Express reported a solid revenue and adjusted earnings per share beat this morning. It also reaffirmed its full-year guidance. Total travel-and-entertainment business increased 5%, driven by 8% growth in restaurants. Shares rose about 1%. 5. Club name Abbott Laboratories was upgraded to buy at Jefferies following Thursday’s ugly sell-off in reaction to the company’s slight cut to its growth outlook. Many others came to the stock’s defense, and CEO Robert Ford told Jim Cramer last night he thought the stock pullback was “a little bit of an overreaction.” 6. Dupont named a catalyst call buy idea at Deutsche Bank into second-quarter earnings. It’s the last report before its electronics business is spun off on Nov. 1, and Deutsche Bank argued the Club stock trades at too steep of a discount to its estimated sum-of-the-parts value. 7. Oilfield services provider SLB reported better-than-expected second-quarter revenue while adjusted earnings per share beat by a penny. The company said “customers have selectively adjusted activity, prioritizing key projects and planning cautiously, particularly in offshore deepwater markets.” 8. Chevron’s $53 billion acquisition of Hess Corporation is set to close after winning an international court case against rival Exxon Mobil in a battle over Hess’s offshore oil assets in Guyana. The legal fight had delayed the deal’s closing. 9. Shares of Talen Energy are up more than 10% after the company says its buying gas fired power plants in Pennsylvania and Ohio for $3.5 billion after estimated tax benefits. It’s all part of the growing power needs of the AI race. 10. Union Pacific is exploring an acquisition of railroad peer Norfolk Southern , The Wall Street Journal reported yesterday evening. The deal would be a big one, with Norfolk Southern’s market cap being roughly $60 billion, and turn Union Pacific into a coast-to-coast operator. Sign up for my Top 10 Morning Thoughts on the Market email newsletter for free (See here for a full list of the stocks at Jim Cramer’s Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
10 things to watch in the stock market Friday, including earnings and merger talks
